Risk Assessment and Management Strategy
Tainan Enterprises actively put corporate social responsibility in practice, incorporate corporate governance, environment, and social factors into company management policies and operating activities, and formulate corporate social responsibility policies, systems, and specific plans to comprehensively put corporate social responsibility in practice and pursue the balance between the economic and sustainable social development. In addition, a risk management mechanism has been established about the sustainability related issue, and the Sustainable Development and Quality Assurance Department and related business units will regularly report issues to the general manager and the board. The latest report to the board was on 2024.11.04. about the reporting greenhouse gas emission project. The board also agreed that should be implemented in accordance with the policy.
Board of Directors
General Manager
Financial Manager
CSR Task Force
Corporate Governance Team
- Business Performance
- Ethical Management
- Risk Management
- Shareholder Protection
- Internal Audits and Controls
Employee Care Team
- Compensation and Benefits
- Labor/Management Relations
- Workplace Environment
- Talent Cultivation
- Gender Equality
Product Safety Team
- Quality Control
- Customer Service
- Customer Privacy
- Management of Chemicals
- Innovative Technologies
Climate Change Task Force
- Environmental Sustainability Policy
- Energy Monitoring
- Sustainable Supply Chain
- Waste Management
- Carbon Reduction and Water Conservation
Social Inclusion Team
- Social Engagement
- Circular Economy
- Philanthropy
- Charity Support
Material Risk
and
Management Strategy
To ensure the Company’s stable operations and sustainable development, the risk management policies, procedures and measures were approved in November 2022 to strengthen the control of overall operations. The Board of Directors, Audit Committee, General Manager, and the Audit Office jointly participate in the implementation of the above
According to the Risk Management Policies and Procedures, Tainan Enterprises should identify the types of risks, including:
Significant Risk
Risk Description
Management Response
Significant Risk
Risk Description
Employee Turnover
Management Response
“People are the leading indicators and the key indicator.” In keeping with our core values of ethics and integrity, professionalism and accountability, Tainan hopes that instead of money, the company and employees are linked together by common life values. These values should be aligned with the personal development goals and ideals of the employee. Design thinking workshops were therefore organized for managers and employees to brainstorm together and come up with projects that support the company and the employee’s personal development. This will in turn imbue their work with a greater sense of mission and value.
Significant Risk
Risk Description
Political environment, social environment, technical environment, economic environment
Management Response
The COVID-19 pandemic outbreak in early 2020 spread rapidly across the world and put a freeze on consumer demand for textiles and apparel. A surge in the pandemic in Asia during 2021 dealt another blow to the apparel industry due to the textile supply chain being disrupted by national lockdowns. The pandemic situation in Asia gradually ease and restrictions were lifted as a model of co-existence with COVID-19 was adopted. The overall economic environment started returning to normal.
Significant Risk
Risk Description
Customers are increasingly making use of high-stretch fabrics. Care must therefore be taken before mass production to calculate the amount of fabric loosening, steaming, and contraction required, as well as precise management of cutting and sewing.
Failure to do so will have a serious impact on the quality and dimensions of the end product, and may ultimately lead to customer complaints and compensation claims.
Management Response
1. When a potential order is under discussion, a preliminary risk assessment is conducted by the R&D Department based on the customer’s sample fabric/clothing
2. Once the bulk fabric arrives at the factory, a piece is sent for third-party analysis to verify its quality.
3. QC/QA in the workshops not only follow the existing SOP but also check that ball point needles are regularly replaced to reduce the risk of breaks in the stretch yarn during sewing
4. Samples are sent for third-party testing three weeks before shipping to check that seam strength, color fastness, appearance and dimensions after washing all match customer requirements.
Significant Risk
Risk Description
Financing, investment, liquidity management, share dividend, exchange rates, interest rate hedging
Management Response
In terms of investment, the Russian bank bonds defaulted due to the Ukraine-Russia War, resulting in the recognition of investment loss. For major capital expenditures, an investment evaluation was conducted for a new factory in Indonesia, hoping to improve the possibility of benefit realization. Countermeasures are set for financing to avoid the negative impact of interest rates.
Significant Risk
Risk Description
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Management Response
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Significant Risk
Risk Description
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Management Response
In 2022, Tainan Enterprises established the "Information Security Committee" to coordinate information security and protection related policy formulation, implementation, risk management and audit on the compliance. The top leader of the enterprise information security organization reports to the Audit Committee every six months on the effectiveness of information security management and information security-related issues and directions. Tainan Enterprises’ Audit Committee is responsible for overseeing the governance of corporate information security, and committee members with backgrounds in information security will oversee the evaluation of Tainan Enterprises' corporate information and network security management mechanism and direction.
To prevent information security incidents, in addition to conducting informationlevel business continuity exercises at the Taipei and Tainan backup data centers each year, daily and weekly off-site backup of important system data are also carried out. Vulnerability scanning is conducted by external contractors each year as well. All of these form part of routine information security operations. In terms of boosting information security awareness, employees undergo enhanced education, training and instruction on information security incidents that took place outside. Random sampling is also conducted. In addition, we regularly arrange for Information System management personnel to receive training and certification in information security-related courses.